O2 plans to up its Priority Moments offering with improved targeting capabilities to brands after achieving redemption rates of up to 95% and increasing basket spend by up to 40% for some of its existing brand partners. 

The UK’s second-largest operator by subscriber count made the claims yesterday speaking at the Guardian Mobile Business Summit.

Speaking at the event Mark Stevenson, O2 Priority Moments managing director, told attendees, “Every five minutes of every day, five O2 customers are redeeming O2 Priority Moments [offers], that’s a stat we’re proud of.”

He followed up this claims by saying up to 1bn O2 Priority offers have been viewed so far and offered further insights into redemption rates of O2 Priority Moments, which launched in July last year. 

Conversion rates in-store reached as high as 95% and basket spend has increased 40% on average, he claimed, adding that last Christmas over £10m of incremental spend was generated for O2 Priority partners. “As a bare minimum, generally you get 5-10%, so when you look at that in the old world in the days of DM, even our worst-performing offers are ten-times better than what there’s been in the past,” said Stevenson.

“We deliver cold, hard commercial benefits for people,” he said, adding that it would also offer “targeted local discovery” using new technologies from next year.

“Some of the stuff we want to do going forward is look at things like how do we refine our targetting,” he said, “how do we make it more relevant and how do we make it more aligned to the other Priority schemes?”

In addition, the operator also hopes to “integrate” its overall Priority offering which currently consists of Priority Tickets, through a tie-up with AEG, Moments with multiple retail and leisure partners, as well as Sports alongside Nike.

“For us it was about driving loyalty and differentiation through partnerships,” he said also highlighting the competitive nature of the mobile operator vertical.

Also speaking at the event, Tamara Gillian, CEO of Cherry, one of the partners in the launch of O2 Priority Moments, who explained that O2 wanted to differentiate itself from rival discount offerings.

There’s a big debate about the daily deals market, and O2 wants it to be different by working with the brands that don’t normally participate [in such activity],” she said.

The mobile operator recently announced the extension of its Priority Moments scheme to the SME sector following the original launch of the scheme in July 2011 which has won over brands such as Harvey Nichols, Odeon and WH Smith, as leisure and retail partners (nma.co.uk 17 Oct 2012).

During his presentation, Stevenson also pointed out the strategic benefit that O2’s Priority scheme offered the Telefonica-owned outfit itself, citing it as bolstering loyalty in the ultra-competitive mobile operator landscape. “There’s up to as many as nine competitors in the landscape,” he said comparing mobile telecoms to the utilities sector.

Stevenson’s presentation came the same day as the mobile operator sector saw a new entrant in the guise of TPO (The People’s Operator) an MVNO which lets customers donate up to 10% of their call, text and data spend to a charity, community group and claimed that 25% of all its profits will be donated to charity.

Highlighting CSR (corporate social responsibility) as its unique selling point, TSO is backed by ex real estate tycoon Andrew Rosenfeld, ex-CEO of Minerva, and is headed-up by CEO Alex Franks, an ex-Blyk executive.


Published 20 November, 2012 by NMA Staff

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